Saturday, January 29, 2011

India-Indonesia : Long lost friends


The Indonesian president being welcomed by
the Indian Prime minister

The visit of the Indonesian president Susilo Bamang Yudhoyono takes our memory back to the times when India as a nation was trying to find its place in the world. The largest democracy in the world today, celebrated its big day and entry into the world stage with the presence of one of the greatest leaders of Non alignment and the co founder indonesian Leader Sukerno who became the cheif guest of India for the  first Republic day in 1950.
  The relationship that India shares with Indonesia has been forged culturally over centuries. India's influences have shaped Indonesian way of life and Language and much to our amusement Indonesia still has over nine percent of its population which practices Hinduism.
 The ties between Indonesia and India went a bit on the down during the cold war era. Indonesia's anti communist uprisings brought it into close conflict with the countries such as China with which Indonesia cut off diplomatic ties until 1990.India with its socialist bent of mind signed a treaty of friendship with the Soviet Union which again signaled our intent as to which direction we would like to go by. But still India remained firm on not formally taking any sides.
The transformation of Indonesia into a gradual and responsible democracy happened eventually and India and China's growth in the world brought the world and Indonesia to a stage where Indonesia’s gradual growth would be followed by how ASEAN and Indonesia in ASEAN would deal with the two emerging giants of Asia.
India's investments in Indonesia are poised to grow to 15 billion dollars from 12 billion in 2010 and both the countries expect to reach a volume of trade to 25 billion dollars by 2015.India could benefit immensely from Indonesia. Broadly analyzing we could assess them using 4 broad points.

 Economic-Indonesia has an abundance of natural resources its major exports include oil & Natural gas, coal, Timber among its top exports .For India Palm oil and coal remain a top import from Indonesia. The country is supposed to have the largest reserve of Natural gas in the Asia Pacific region which could be beneficial for India as it searches for alternate regions to secure its energy supply. Indonesia also remains the world’s largest Thermal coal exporter and 47 percent of coal from Indonesia is sent to India.

 Political benefit -India and Indonesia are two large countries and democracies with multiple dimensions and problems which are of similar nature and Indonesia's gradual transfer to a more democratic set up will help it in founding stronger democracy and democratic values and ideas from India. Being the Largest country in Southeast Asia Indonesia has a strong role to play in the politics in ASEAN for which it would hold the Chair this year.
   India could use this opportunity to realize its goals to achieve the maximum benefit with ASEAN countries.

Strategic Interests - All the SLOC's or sea lines of communication pass through Indonesia (Straits of Melaka, Sunda, lombok and Makassar).Hence a good will gesture with Indonesia,India conducts naval exercises and patroling in the Andaman sea where India and Indonesia share a maritime boundary.
 India enjoys one advantage that is the lack of Chinese naval presence in Southeast Asia but India's initiative with these countries has enabled India to understand the important strategically prominent role which India could achieve in this region as a great power in Asia .
 Indonesia could play a great role in the protection of the IOR (Indian Ocean Region) against terrorist attacks launched from Indonesia into Indian territory because the proximity of the Andaman and Nicobar Islands is a mere 90 nautical mile from the tip of the Island of Sumetra.Indonesia and India have set up a joint working group on terrorism and also signed an extradition treaty.

The other giant of Asia and India's benefit to Indonesia
Economically the China -ASEAN FTA (CAFTA) has taken the trade between the two regions to a great new level. The view in Indonesia is that the trade pact led to the dumping of Chinese goods in the market and the alternate trading partner large enough in Asia would be India. The Indonesians are also the same as they face fears from an aggressive China claiming the whole of South China sea and its waters bringing them into conflict with Indonesia.
 In August,2010 Indonesia's exports to India reached six billion dollars and in just nine months of 2010 Indonesia recorded a trade surplus which means that Indonesia also gained in its trade with India. Indonesia compliments both the countries as they are hunting for resources to fuel their high rate of growth. The benefits of India's investments in Indonesia benefit the economy and more importantly the people. Indian companies are to develop two airports at Bali and Java and also railway lines. To increase the people to people contact India has announced to issue Visa on Arrival schemes to Indonesians and have student exchanges and direct flights linking both the nations.
  This use of soft power in Indonesia will further foster the relations between both the countries. Southeast Asia will become a playing ground for both India and China in which the role of Indonesia will be substantial as it emerges as one of the leading nations in the developing world and the ASEAN region.
 It is apt to conclude in the words of Sukarno who said, "Your country and your people are linked to us by ties of blood and culture which date back to the very beginning of time". The cultural linkages and strong bonds that India shares with Indonesia are what makes us natural partners or just better to say two lost friends who need to catch up.